At Property Partners Zambia, one of the conversations we have most regularly with sellers is about valuation — specifically, why the figure on a formal valuation report sometimes bears little resemblance to what buyers are actually willing to pay, or in some cases, why a valuation appears to significantly undervalue a property that a seller has invested heavily in building or improving.
This is not a criticism of registered valuers, who perform an important and professional function in the market. It is an honest reflection of a gap that estate agents see regularly — a gap between what a formal valuation says a property is worth and what the market is telling us through real buyer behaviour, actual offers and completed transactions.
Understanding why this gap exists, and what it means for sellers and buyers, is one of the most useful things we can share with our clients.
What a Formal Valuation Actually Measures
A registered valuation surveyor is trained to assess a property's value using recognised methodologies — typically the comparable sales method, the investment method for income-producing properties, or the depreciated replacement cost method for specialised or unique properties. They are bound by professional standards and must base their conclusions on verifiable data.
In practice, for most residential properties in Zambia, the comparable sales method is most commonly used. This means the valuer looks at what similar properties in the same area have sold for recently and uses those transactions as a benchmark for the property being assessed.
This approach is sound in principle. The challenge in the Zambian market is that it depends entirely on the quality and availability of comparable sales data — and in many parts of Lusaka and other Zambian towns, that data is limited, inconsistent or simply not publicly available in the way it is in more mature property markets.
When the Valuation Comes in Too Low
We have seen situations recently where a formal valuation has come in significantly below the seller's asking price — not because the seller was being unrealistic, but because the valuation methodology did not adequately account for the quality of the specific property being assessed.
Here is a scenario we recognise: a seller has built or purchased a well-constructed home in an established suburb. The build quality is noticeably superior — better materials, stronger foundations, higher specification finishes, a more thoughtful layout. The property stands out from others in the street or area. But when a valuation is conducted, the comparable sales used as benchmarks are drawn from nearby properties that were built to a lower specification, sold informally, or transacted at prices that did not reflect the true replacement cost of a better-built home.
The result is a valuation that may be well below what it would cost to build the same property today, and well below what a discerning buyer who understands quality would genuinely be willing to pay.
In these cases, the valuation is technically defensible — it reflects the data available — but it does not capture the full picture. As estate agents, we see the frustration this causes sellers who have invested significantly in their property and feel that the formal assessment has missed something important.
What can sellers do in this situation?
- Request that the valuer specifically notes the build quality and specification in their report and explains how this was weighted in the final figure
- Consider commissioning a second independent valuation, particularly if you believe the comparables used were genuinely not comparable in terms of quality
- Ask your estate agent to provide a detailed market assessment alongside the formal valuation — not as a replacement for it, but as additional context that reflects current buyer appetite and recent market activity at similar quality levels
- Be prepared to have an honest conversation about whether the market in your specific area has sufficient depth at the price point your build quality justifies — sometimes the right buyer exists but takes longer to find
When the Valuation Comes in Too High
The opposite problem is equally challenging — and in some ways more difficult to manage, because it creates expectations that are very hard to walk back.
We have seen instances where a formal valuation has returned a figure that is significantly above what the market currently has appetite for. The seller receives the report, sees a number that validates or even exceeds their hopes for the property, and proceeds to list at or near that figure — fully expecting that offers will follow.
As estate agents, we then face a difficult reality: the buyers we are engaging with, based on their budgets, their financing constraints and their comparison of other available properties, are simply not prepared to offer anywhere near the valuation figure. The property sits on the market. Viewings slow down. The seller becomes frustrated and begins to question the agent rather than the price.
This situation can arise for several reasons:
- Valuations may reflect replacement cost rather than market demand. A property may cost significantly more to build today than buyers are willing or able to pay for it in the current market, particularly where financing is constrained and cash buyers are working within defined budgets.
- Valuations may be based on optimistic assumptions about the area or development trajectory that have not yet materialised in actual buyer behaviour.
- The valuation may be technically sound but timed poorly — conducted during a period of stronger market sentiment that has since shifted.
- In some cases, sellers actively seek out valuers who they feel will support a higher figure — not necessarily through any improper process, but simply by choosing assessors whose methodology or assumptions tend towards higher outcomes.
The consequence, whichever the cause, is a false expectation that damages the seller's experience, prolongs the time on market and ultimately often results in a price reduction that could have been avoided with more realistic positioning from the outset.
What can sellers and agents do in this situation?
As estate agents, our role is not to simply accept a valuation figure and list accordingly. It is to have an honest conversation with the seller about what the market is telling us — through active buyer enquiries, comparable listings, actual offer levels and feedback from viewings.
If our market assessment suggests that the appetite among current buyers is materially below the formal valuation, we will say so — respectfully and with evidence. This is not a challenge to the valuer's professional judgement. It is a reflection of the reality we see every day in our interactions with buyers.
A valuation tells you what a property is theoretically worth based on a methodology and available data. The market tells you what a buyer will actually pay today. Both pieces of information matter — and the gap between them, where it exists, needs to be understood and managed rather than ignored.
The Estate Agent's Role in Bridging the Gap
At Property Partners Zambia, we approach valuation conversations with honesty, transparency and a genuine commitment to serving our clients' best interests — which sometimes means having uncomfortable conversations about price.
When we conduct a market assessment, we look at:
- What comparable properties are currently listed for in the same area and price bracket
- What offers have actually been received on similar properties — not just asking prices, but concluded transaction levels where we have access to that information
- The profile of active buyers in the market at that price point — their budgets, their financing options and their alternatives
- The specific features of the property that may justify a premium or require a discount relative to the broader market
- Current economic conditions, including the Kwacha/USD dynamic, construction cost inflation and the availability of mortgage financing
We share this assessment with sellers alongside, not instead of, the formal valuation. Our goal is to give sellers the most complete picture possible so they can make an informed decision about how to price their property and what timeline to expect.
A property priced in line with genuine market appetite sells faster, attracts more serious buyers and closes with fewer complications. A property priced on the basis of a valuation that does not reflect market reality can sit for months — and often eventually sells for less than a realistic initial price would have achieved.
A Note for Buyers
If you are purchasing a property with the assistance of bank financing, your bank will require a formal valuation before approving a loan. If the valuation comes in below the agreed purchase price, the bank will typically only finance against the valuation figure — leaving you to fund the shortfall from your own resources or renegotiate the purchase price with the seller.
This is another reason why independent valuations matter for buyers, not just sellers. Commissioning your own valuation before making an offer, or at least before committing to a price, gives you important information and potential negotiating leverage — particularly in a market where financing constraints mean that the gap between a valuation and an agreed price can quickly become a deal-breaking issue.
What This Means in Practice for the Zambian Market in 2026
The current market conditions in Zambia make this conversation more important than ever. Construction costs have risen significantly over the past two years, which means that the cost of building a property today is often well above what comparable older properties in the same area have transacted for. At the same time, elevated interest rates, limited mortgage access and a cautious buyer pool mean that market appetite — what buyers are actually willing and able to pay — does not always keep pace with construction cost inflation.
This creates a pricing environment where formal valuations, asking prices and actual offer levels can all sit at very different points. For sellers, the temptation is to anchor to the highest of these figures. For buyers, the temptation is to anchor to the lowest. The estate agent's role — and one we take seriously at Property Partners Zambia — is to help both sides find the point where a transaction is genuinely possible, fairly structured and unlikely to fall apart before completion.
The Kwacha/USD dynamic adds a further layer of complexity. Where properties are priced in US dollars but must be settled in Kwacha under the Bank of Zambia Currency Directives of 2025, the exchange rate at the time of each payment becomes a variable that affects the effective price for both parties. Valuations conducted in one currency at one exchange rate may look very different by the time offers are being made and payment schedules are being agreed.
How Property Partners Zambia Can Help
Whether you are preparing to sell, considering a purchase or simply trying to understand what your property is currently worth in the market, our team is available to provide an honest, evidence-based market assessment alongside your formal valuation.
We do not tell sellers what they want to hear. We tell them what the market is telling us — and we back that up with current data, active buyer feedback and years of experience in the Lusaka residential market.
To speak with our team or to enquire about a specific property, please use the enquiry form on the relevant listing page on our website, or contact us via our Contacts page. This ensures your query is properly recorded, routed to the right team member and handled in line with our obligations under Zambia's Data Protection framework.
